Volkswagen is €11 billion short of work in 2026 / Depositphotos
The German automotive group Volkswagen Group is encountering noteworthy economic adversities. The enterprise lacks roughly 11 billion euros to ensure continuous functions in the coming year.
As conveyed by Delo.ua, this data was released by the German publication Bild.
It is emphasized that these funds are vital for introducing fresh models, allocating capital towards cutting-edge technologies, and upgrading manufacturing facilities.
The circumstance has prompted critical staff resolutions and the pronouncement of an extensive cost-reduction initiative and disposals of holdings.
The condition of the group, which encompasses prominent trademarks such as Volkswagen, Porsche, Audi, Skoda, SEAT, and Bentley, is generating worry among industry observers. The financial health of the Porsche segment has particularly declined, transitioning from a profitable status to one of unprofitability. Amid these complications, Oliver Blume stepped down from his role as the company’s Chief Executive Officer.
Volkswagen’s administration has responded to the monetary pressures by executing substantial workforce and expenditure reductions in marketing, investments, and sales domains.
According to the management, these actions are intended to curtail expenses and improve the operational effectiveness of the enterprise. Nevertheless, economists suggest that such measures might prove insufficient to secure stability.
Shortfall of €11 billion
The monetary predicaments have impacted the entire corporation. A deficit of 11 billion euros indicates that Volkswagen will lack the assets for essential investments in 2026.
In order to surmount the trouble, Volkswagen is exploring the option of divesting certain assets, including the engine manufacturing business Everllence (previously MAN Energy).
Moreover, the execution of Italdesign and IAV is under consideration, alongside the pursuit of fresh backers and infusions of capital to sustain pivotal ventures.
Specialists caution that any further weakening in the concern’s fiscal results could precipitate a decline in its creditworthiness.
Should this transpire, procuring debt will become more challenging, and the repercussions could extend to all Volkswagen affiliates.
It is worth mentioning that in July, Volkswagen, Europe’s paramount automaker, publicized losses amounting to 1.3 billion euros for the first half of 2025, resulting from US import duties.
